Getrag Business report FY2005-2008

Business Highlights

-In February 2005, the Company announced to develop and produce the manual and automated manual transmissions for the common platform used on the Mitsubishi Colt and Smart ForFour.

-In July 2007, Mitsubishi Motors Corporation announced that it has developed new Twin Clutch SST automated manual transmission (AMT). The new component systems will be mounted on its vehicles starting from the new Lancer Evolution X (Ten) to be launched in autumn. Six-speed Twin Clutch SST, which has been jointly developed with Getrag Ford Transmissions, is expected to improve the fuel economy by 20% compared to its 5-speed automatic transmissions.

-In December 2007, Mitsubishi Motors Corporation announced that it will add to its lineup the Galant Fortis with an automated manual transmission "Twin Clutch SST" for more sports-minded drivers. The Japanese automaker developed the transmission system jointly with Getrag Ford Transmissions GmbH.

Joint Venture
-On January 1, 2007, the joint venture between the Company and Jiangling Motor Company Group (JMCG) for the production of transmissions and transmission components named Getrag (Jiangxi) Transmission Co. Ltd. was officially started its operations The Company invests around 34 million Euros to hold 66.7 % share in the joint venture. JMCG will hold the remaining 33.3 % and bring into the joint venture three production plants (Nanchang, Ganzhou and Yudu) with about 2,200 employees. The headquarters will be based in Nanchang. The new company will initially produce some 300,000 transmissions and 1.1 million transmission components per year primarily for the Chinese market. The product portfolio will comprise current JMCG products and products of the Company.

-The Company and Chrysler LLC signed the definitive agreements for the development, production and supply of its PowerShiftR transmissions for Chrysler in North America. The Company together with Chrysler will invest around $ 455 million in a new state-of-the-art transmission plant in Tipton, Indiana. (From a press release on Apr. 2, 2008)

-The Company announced the restructuring of its German operations. The core of this is the restructuring of the Ludwigsburg site. Considerable portions of the production will be moved to the Neuenstein and Rosenberg sites. The machining of engine timing gears, on the other hand, will be concentrated in Ludwigsburg and thereby create a "Center of Excellence" for these products. To adjust the cost structure, the plant will be relocated to a smaller production plant in the Ludwigsburg region. 111 people will then work at this new Ludwigsburg plant location. The surplus personnel, amounting to 215 positions in the production, will be reduced if necessary. Also, the number of jobs at the Untergruppenbach site will be reduced by 130 positions. (From a press release on Jan 21, 2009)

-In July 2006, the Company announced to sell its subsidiary Getrag SynchronTecknik GmbH, which develops and manufactures sychronizer systems and synchronizer components, to Hoerbiger Antriebstechnik Holding GmbH, a business unit of Hoerbiger Holding AG. A memorandum of understanding to this effect was signed at the end of June 2006.

Reorganization of US Subsidiaary under Chapter 11
-GETRAG Transmission Manufacturing LLC (GTM LLC) has filed for protection under chapter 11 of the United States Bankruptcy Code for its Tipton, Indiana facility. The GTM LLC facility was being constructed for the sole purpose of manufacturing dual clutch transmissions for Chrysler. This action is a direct result of a recent termination by Chrysler of contractual agreements related to the construction and operation of a dual clutch transmission manufacturing facility in Tipton. GETRAG Transmission Manufacturing LLC is inclusive only of the Tipton facility and its filing is unrelated and does not impact the other operations of the Company or GETRAG Transmissions Corporation in the United States. (From a press release on Nov. 17, 2008)


Technological Alliance
-In June 2006, the Company entered into agreement with Bosch to work together on hybrid systems. The cooperation agreement covers the development and marketing of parallel hybrid systems in conjunction with dual-clutch transmissions and electrical final-drive units.

-In January 2006, the Company announced, jointly with Dana, that they have expanded their strategic alliance to develop electronically controlled limited-slip differentials and electronic torque couplings. Under terms of the agreement, engineers from them will be working in both the United States and Europe to develop advanced torque- transfer products. The electronically activated devices will be used in Dana axles and Getrag axles, transaxles, and power-transfer units, which in turn will be applied in both light-truck and passenger-car platforms.

Product Development
-In December 2004, the Company presented the new all-wheel drive (AWD) system in a high performance front-wheel-drive demonstrator vehicle. At the heart of the TWINSter All Wheel Drive System are two entirely independent, electronically controlled clutches. Both of them are compact and located close to the engine in the housing of the angular drive or power take off unit (PTU). They distribute torque to the front wheels independently, or in other words each front wheel can be provided with torque separately, while the angular drive supplies the main torque thru the prop shaft to the rear axle. This eliminates the need for a front axle differential. The Company is currently supplying the hardware for the entire range of Volvo all-wheel-drive cars, the Fiat Panda 4x4, and a variety of American all-wheel-drive and crossover vehicles.

-In September 2007, the Company presented the latest developments in the Getrag PowerShift product portfolio at IAA International Motor Show. With increased efficiencies and reduced drag torques, Getrag's dual-clutch transmissions consume at least 4-8% less fuel than the most modern automatic torque converters. As a particular highlight the Company shows as the first manufacturer worldwide a hybrid concept design based on a dry dual-clutch transmission.

Investment Activities

Overseas Investment
-In February 2005, Getrag Ford Transmissions entered into an investment agreement the with the Ministry of Economy in Slovakia for the establishment of a new production facility in Eastern Slovakia in the region of Kosice close to Kechnec. Getrag Ford Transmissions will invest around 300 million Euro in Slovakia to build a state-of-the-art production facility for new type of transmission technology. It is planned to create up to 750 jobs and reach a turnover of 300 to 400 million Euro.

-In November 2007, the Company officially opens a production site for Getrag PowerShift transmissions and motorcycle transmissions in the Industrial Park of Kechnec in Eastern Slovakia. It is the first site of the company and of an independent transmission manufacturer worldwide to produce this new dual clutch transmission technology - the Getrag PowerShift technology. Initially the Company will produce 110,000 Getrag PowerShift transmissions and 100,000 motorcycle transmissions p.a. with 450 employees. Production capacity will reach 220,000 PowerShift transmissions p.a. by 2010.

-The Company and Getrag Ford Transmissions will invest 500 million US dollar in the joint venture Getrag Transmission Manufacturing de Mexico S.A. de C.V.. The new transmission plant will be built in Irapuato, about 300 km northwest of Mexico City. With approximately 1,200 employees this new independent company will produce around 350,000 dry dual clutch transmissions annually. The plant is expected to be operational in late 2009 / early 2010. (From a press release on June 3, 2008)